Moroccan authorities have approved Eni’s farm-in to the Rabat Deep Offshore exploration block from UK’s Chariot Oil and Gas, the Atlantic margins-focused oil and gas exploration company, the latter said in a statement.
The approval means Eni now has operatorship for the Rabat Deep Offshore permits I-VI, with a 40 percent equity interest. Woodside has a 25 per cent interest, while Chariot has 10 per cent and Morroco’s Office National des Hydrocarbures et des Mines owns 25 percent.
The farm-in was first announced on March 30 when Eni said it hoped to find liquids. Gas and liquids have recently been found offshore other areas along the northwest African coast, although Moroccan waters remain thinly explored.
Eni’s farm-in comes with a consideration of a capped cost carry on drilling the JP-1 prospect as well as a carry on other geological and administrative costs relating to Rabat Deep and a recovery of Chariot’s investment to date, Chariot said in a statement.
The JP-1 prospect, which will be targeted by the RD-1 well, is a large, four-way dip closed structure of approximately 200 square km areal extent, with Jurassic carbonate primary reservoir objectives and an independently audited gross mean prospective resource estimate of 768mmbbls, Chariot said.
“We are pleased to have satisfied all conditions precedent and welcome Eni as the operator of the
Rabat Deep acreage,” said Larry Bottomley, chief executive of Chariot. “We anticipate that further to completing the Environmental Impact Assessment, finalising well planning and securing a rig, drilling will now occur in early 2018.”
Retaining a 10 per cent equity interest in the well has the potential to create transformational value in the success case due to the large scale prospective resources, excellent contract commercial terms and robust economics, he added. “Success will also materially de-risk other targets we have identified within our neighbouring Mohammedia permits in which we hold a 75 per cent interest.”